The bill will allow taxpayers to claim a credit against their Arizona income tax for each qualified member of a targeted group that they employ, with the credit being capped at a maximum of $1,000 per individual. The aggregate amount of credits issued will not exceed $10 million per calendar year, with strict rules on the number of certifications granted to ensure accountability and fiscal responsibility. The implementation of this credit is intended to improve employment rates among underrepresented groups, promoting diversity within the workforce.
Summary
House Bill 2805, introduced by Representative Carbone, proposes an amendment to the Arizona Revised Statutes by adding a new section that establishes an 'Arizona work opportunity tax credit.' This credit is designed to incentivize employers to hire individuals classified as members of 'targeted groups' as defined in the federal tax code. The new law aims to provide financial relief and encouragement to businesses that engage in inclusive hiring practices, thus supporting job creation and economic growth throughout the state.
Contention
While the bill's framework appears beneficial in theory, it may face scrutiny regarding its effectiveness and the administrative burden it places on the Department of Economic Security, which is responsible for certifying eligible employees. Critics may argue that the $10 million cap could limit the bill's impact, preventing many potential hires from benefiting from the tax credit. It remains to be seen how the application of this law would unfold in practice and whether businesses will take full advantage of the incentive.
Individual income tax: forms; option for individuals to complete a donor registry schedule to participate in organ donor registry with annual income tax return; provide for. Amends sec. 471 of 1967 PA 281 (MCL 206.471) & adds sec. 474. TIE BAR WITH: HB 4363'23, HB 4364'23
Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children who are not enrolled in public school.
Establishing the education opportunity tax credit to provide an income tax credit for taxpayers with eligible dependent children who are not enrolled in public school.